Daily News: July 8, 2013

Bloomberg: S&P to Argue ‘Puffery’ Defense


Bloomberg reported that Standard & Poor’s will defend itself in the government’s fraud case against the ratings agency by arguing reasonable investors would not have relied on its “puffery” about credit ratings.

The article noted that S&P said in its request to dismiss the case that the government can’t base its fraud claims on S&P’s assertions that its ratings were independent, objective and free of conflicts of interest because U.S. courts have found that such vague and generalized statements are the kind of “puffery” that a reasonable investor wouldn’t rely on.

To read the full Bloomberg article click here.